Boeing in talks for short-term US government aid
WASHINGTON: Boeing Co confirmed it is in talks with senior White House officials and congressional leaders about shortterm assistance for itself and the entire aviation sector.
Boeing, already struggling to win approval from regulators for its 737 MAX to return to service after two fatal crashes in five months, is in talks with the US government to try to win support for manufacturers, suppliers, airlines and airports, the person said.
This discussions come on a day the planemaker saw its stock plummet 24 per cent to $129.61, and is off more than 60 per cent over the last month as the coronavirus pandemic slashed travel demand worldwide. Earlier on Monday, S&P Global downgraded Boeing’s credit rating and lowered its free cash flow expectations for the company.
The Boeing talks for short-term government aid were reported earlier by Bloomberg News, and later confirmed by a source.
Boeing said late on Monday that ready short-term access to public and private liquidity will be one of “the most important ways” for airlines, airports, suppliers and manufacturers to recover. “We appreciate how the administration and Congress are engaging with all elements of the aviation industry during this difficult time,” is added.
Boeing said it is “taking steps to manage the pressure on our business. We’re leveraging all our resources to sustain our operations.” US airlines and cargo carriers have said they are seeking at least $58 billion in loans and grants along with additional tax changes, while airports have sought $10 billion.
Boeing declined to say how much in assistance it was seeking or in what form it might take, but added the entire US aerospace industry that “supports over 2.5 million jobs and 17,000 suppliers — is facing an urgent challenge resulting from the coronavirus pandemic.”